Brace for a roller-coaster ride

PRESIDENT DONALD TRUMP was apoplectic in his reaction to the judgment of the US Supreme Court striking down the ‘reciprocal’ tariffs that he had imposed on April 2, 2025 under the International Emergency Economic Powers Act (IEEPA).

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He abused the justices of the US Supreme Court (an act that would have immediately attracted the contempt jurisdiction of the Supreme Court of India), but the US swears by the First Amendment; and the justices are unflappable.

Mr Trump did not stop at abuse. He lost no time in imposing more or less the same tariffs using other extant laws:

■ Section 122 of the Trade Act, 1974 (which the President invoked);

■ Section 232 of the Trade Expansion Act, 1962;

■ Section 301 of the Trade Act, 1974 (which the President cited and threatened to launch investigation into several countries’ exports); and

■ Section 338 of the Smoot-Hawley Tariff Act, 1930.

As far as India is concerned, post-judgment, the tariff on nearly all goods is at 15% (instead of the 18% tariff announced on February 2, 2026). Under Section 232 of the Trade Expansion Act, the tariff on steel, aluminum, semiconductors and certain auto-components is at 50%. The tariffs are still high and will affect India’s exports. The government of India said it was examining the situation post-judgment. However, the immediate fallout of the judgment was that both sides agreed that the talks to finalise the text and sign the Interim Agreement may be deferred — without a date being specified!

All are helpless